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Indian Bank has
reported 52% surge in net profit at Rs 2119.35 crore for the quarter ended
December 2023 (Q3FY2024). The bank has posted moderate 6% growth in net
interest income (NII), while the core fee income of the bank improved 21% in
Q3FY2024. The Net Interest Margin (NIM) of the bank eased to 3.41% in Q3FY2024
compared to 3.74% in the corresponding quarter of previous year.
On business front, the
bank as has posted 11% growth in business with strong 13% surge in loan book.
The asset quality of the bank has further improved in Q3FY2024. Bank has
substantially raised the credit to deposit ratio to 77.9% at end December 2023
from 75.6% at end December 2022. However, the CASA ratio of the bank has
declined to 39.7% at end December 2023 from 40.4% at end December 2022.
Asset quality continues
to improve: The bank has continued to improve asset quality in Q3FY2024.
The fresh slippages of
loans stood at Rs 1667 crore in Q3FY2024 compared with 1982 crore in previous
quarter and Rs 1313 crore in the corresponding quarter last year.
The recoveries of NPAs
stood at Rs 974 crore, upgradations at Rs 169 crore and the write-off of loans
was at Rs 2225 crore in Q3FY2024.
The standard
restructured loan book of the bank net of provisions declined to Rs 6863 crore
end December 2023.
Provision coverage ratio
was steady at 95.90% at end December 2023 compared to 95.64% a quarter ago and
93.59% a year ago.
The capital adequacy
ratio of the bank stood at 15.6% with Tier I ratio at 12.9% at end December
2023.
The risk weighted assets
of the bank has increased 18% YoY to Rs 380191 crore end December 2023,
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Asset Quality
Indicators: Indian Bank
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Dec-23
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Sep-23
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Jun-23
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Mar-23
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Dec-22
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Variation
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QoQ
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YTD
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YoY
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Gross NPA (Rs Crore)
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22786.52
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24487.53
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26226.92
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28179.53
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29483.91
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-7
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-19
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-23
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Net NPA (Rs Crore)
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2578.72
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2825.85
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3197.55
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4043.07
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4270.48
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-9
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-36
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-40
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% Gross NPA
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4.47
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4.97
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5.47
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5.95
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6.53
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-50
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-148
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-206
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% Net NPA
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0.53
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0.60
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0.70
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0.90
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1.00
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-7
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-37
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-47
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% PCR
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95.90
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95.64
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95.10
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93.82
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93.59
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26
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208
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231
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% CRAR - Basel III
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15.58
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15.53
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15.78
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16.49
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15.74
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5
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-91
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-16
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% CRAR - Tier I -
Basel III
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12.88
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12.63
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12.88
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13.48
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12.58
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25
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-60
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30
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Variation in basis
points for figures given in percentages and in % for figures in Rs crore
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Business Highlights:
Healthy business growth:
The business of the bank
has increased 11% YoY to Rs 1163954 crore end December 2023, driven by 13%
surge in advances to Rs 509800 crore. Deposits rose 10% to Rs 654154 crore at
end December 2023.
CASA deposits ratio moderates:
The CASA deposits of the
bank rose 8% YoY to Rs 259512 crore at end December 2023. The current account
deposits increased 12% to Rs 33814 crore, while saving account deposits moved
up 7% to Rs 225698 crore end December 2023. The CASA ratio declined to 39.7% at
end December 2023 compared to 40.4% at end December 2022, while eased from
40.1% a quarter ago.
The term deposits have
increased 11% to Rs 394642 crore end December 2023. Overseas deposits have surged
89% to Rs 24753 crore end December 2023.
Healthy retail loan
growth: Advances
growth was driven by retail loans rising 14% YoY to Rs 99251 crore at end
December 2023, while credit to agriculture increased 16% to Rs 114422 crore and
MSME 7% to Rs 83172 crore at end December 2023. The corporate credit has moved
up 10% to Rs 177510 crore end December 2023. The overseas credit has jumped 29%
to Rs 35445 crore end December 2023.
Investment book of the bank increased 13% YoY to Rs 206204 crore at end December
2023. The AFS book surged 39% to Rs 59024 crore, while HTM book rose 5% to Rs
146747 crore at end December 2023. The duration of the overall investment
portfolio stood at 2.84 years end December 2023 compared with 2.2 years at end
December 2022.
Margins eases: The bank has showed 83
bps YoY jump in cost of deposits to 5.09%, while yield on advances increased 59
bps YoY to 8.78% in Q3FY2024. Thus, the NIM has declined -33 bps YoY to 3.41%. The
NIM has eased marginally from 3.46% in Q2FY2024.
Branch expansion: The bank has added 16
branches and 33 ATMs in Q3FY2024, taking overall tally to 5835 branches and
4899 ATM`s end December 2023.
Book value of the bank stood at Rs
383.6 per share at end December 2023, while the adjusted book value (net of
NNPA and 25% of restructured advances) was Rs 351.8 per share at end December
2023.
Quarterly Performance
Moderate NII growth on
lower margins: Bank has recorded 20% increase in the interest earned at Rs
14197.62 crore, while interest expenses increased 32% to Rs 8383.43 crore in
Q3FY2024. NII improved 6% to Rs 5814.19 crore in the quarter ended December 2023.
Healthy growth in the
core fee income: Bank has posted strong 21% growth in core fee income to Rs 852
crore, while the treasury income jumped 63% to Rs 328 crore, other income zoomed
28300% to Rs 220 crore, leading to 11% increase in the overall non-interest
income to Rs 1901.64 crore in the quarter ended December 2023. However, the recoveries
declined 2% to Rs 418 crore and forex income dipped 71% to Rs 84 crore.
Expenses ratio rises: The operating expenses
of the bank increased 15% to Rs 3618.64 crore, as other expenses moved up 10%
to Rs 1282.88 crore, while employee expenses increased 17% to Rs 2335.76 crore
in Q3FY2024. Cost to income ratio increased to 46.9% in Q3FY2024 compared with
43.7% in Q3FY2023, allowing the Operating Profit to rise mere 1% to Rs 4097.19
crore.
Provisions and
contingencies decline: The bank has showed -46% decline in provisions to Rs 1349.37
crore. The loan loss provisions declined -39% to Rs 905 crore, while the
standard asset provisions fell -60% to Rs 398 crore. The bank has written back investment
provisions of Rs -10 crore and other provisions surged 375% to Rs 57 crore.
Effective tax rate jumped to 22.9% in Q3FY2024 from 9.7% in Q3FY2023. Net Profit rose by 52%
YoY to Rs 2119.35 crore during quarter ended December 2023.
Financial Performance
9MFY2024:
Bank has posted 52%
increase in net profit to Rs 5815.94 crore in the nine month ended December
2023 (9MFY2024). The net interest income increased 17% to Rs 17257.89 crore,
while non-interest income moved up 9% to Rs 5604.19 crore, pushing up net total
income by 15% to Rs 22862.08 crore in 9MFY2024. The operating expenses
increased 20% to Rs 10327.51 crore, while provision and contingencies declined -32%
to Rs 4640.66 crore, allowing profit before tax to increase 77% to Rs 7893.91
crore in 9MFY2024. The cost-to-income ratio rose to 45.2% in 9MFY2024 compared
to 43.3% in 9MFY2023. An effective tax rate jumped to 26.3% in 9MFY2024
compared to 14.1% in 9MFY2023. The net profit has increased 52% to Rs 5815.94
crore in 9MFY2024.
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Indian Bank: Results
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Particulars
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2312 (3)
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2212 (3)
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Var %
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2312 (9)
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2212 (9)
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Var %
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2303 (12)
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2203 (12)
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Var %
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Interest Earned
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14197.62
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11834.23
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20
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40990.29
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32697.79
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25
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44942.21
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38856.22
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16
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Interest Expended
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8383.43
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6335.04
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32
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23732.40
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17980.65
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32
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24716.75
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22128.27
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12
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Net Interest Income
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5814.19
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5499.19
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6
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17257.89
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14717.14
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17
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20225.46
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16727.95
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21
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Other Income
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1901.64
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1716.45
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11
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5604.19
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5149.19
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9
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7143.06
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6915.45
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3
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Net Total Income
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7715.83
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7215.64
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7
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22862.08
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19866.33
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15
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27368.52
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23643.40
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16
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Operating Expenses
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3618.64
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3154.22
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15
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10327.51
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8611.28
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20
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12097.90
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10926.50
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11
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Operating Profits
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4097.19
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4061.42
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1
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12534.57
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11255.05
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11
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15270.62
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12716.90
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20
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Provisions &
Contingencies
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1349.37
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2515.73
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-46
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4640.66
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6793.21
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-32
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9356.21
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9512.67
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-2
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Profit Before Tax
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2747.82
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1545.69
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78
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7893.91
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4461.84
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77
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5914.41
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3204.23
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85
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EO
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0.00
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0.00
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-
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0.00
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0.00
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-
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0.00
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0.00
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-
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PBT after EO
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2747.82
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1545.69
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78
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7893.91
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4461.84
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77
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5914.41
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3204.23
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85
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Provision for tax
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628.47
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149.93
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319
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2077.97
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627.42
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231
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632.71
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-740.59
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PL
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PAT
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2119.35
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1395.76
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52
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5815.94
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3834.42
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52
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5281.70
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3944.82
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34
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EPS*(Rs)
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62.9
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41.4
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57.6
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38.0
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39.2
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29.3
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Adj BV (Rs)
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351.8
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267.3
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351.8
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267.3
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281.1
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193.1
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* Annualized on current equity of
Rs 1346.96 crore. Face Value: Rs 10, Figures in Rs crore
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Source: Capitaline Corporate
Database
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